The Japan Bank for International Cooperation (JBIC) has signed a loan agreement totalling up to €
74mn with Butson Cement (Busoco) in Vietnam. The loan is co-financed with Soci&eaute;té Générale Tokyo branch (agent bank), with the Vietnamese government providing a guarantee.
The loan will finance the exporting of construction equipment by Japan’s Kawasaki Plant Systems, a Kawasaki Heavy Industries (KHI) Group company, for a new Busoco cement manufacturing plant in Ha Nam, northern Vietnam. With an annual production capacity of 1.4mn tons, the plant will help to meet the growing domestic demand for cement in Vietnam – annual demand stood at 29mn tons in 2005.
The Vietnamese government is encouraging cement plant development to meet the needs of a construction boom, fuelled in part by increasing foreign direct investment. In recent years, domestic cement demand has been growing at an annual rate of 10-20%. Vietnam currently imports 15% of its cement. As well as aiding Vietnam’s economic development, the Busoco plant will support the local business activities of numerous Japanese affiliates operating in Vietnam.
JBIC will continue to extend financial support to enable Japanese firms to win orders for exports to Vietnam.